On October 31, 2024, the Commerce Department reported a 2.1% increase in the personal consumption expenditures price index for September, a decrease from the 2.3% rise in August. This inflation level aligns closely with the Federal Reserve's 2% target and reflects conditions from 2018. Month-over-month, prices rose by 0.2%. This cooling inflation trend occurs before an election where high prices are a pivotal concern, with current prices approximately 20% higher than four years prior. Former President Donald Trump attributes inflation to the current administration's energy policies and suggests it will disappear if elected. Vice President Kamala Harris proposed measures to prevent price gouging and reduce childcare and healthcare costs. Economists express concern that Trump's policies may worsen inflation due to potential tariffs, while experts view Harris' measures as likely ineffective against inflation. Inflation peaked at 7.1% in June 2022 but has since declined as supply chains stabilize and the Fed increased interest rates to a forty-year high. The Fed prefers the personal consumption expenditures price index over the consumer price index for its wider reflection of shopping habits. Chairman Jerome Powell expresses confidence in controlling inflation, with potential discussions for further rate cuts in November and December amidst signs of economic growth.
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